Switch to:
Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-0.76 (As of Today)

Warning Sign:

Beneish M-Score -0.76 higher than -2.22, which implies that it might have manipulated its financial results.

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -1.74 signals that the company is a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.67   Max: 1.27
Current: -0.76

-5.67
1.27

During the past 12 years, the highest Beneish M-Score of Pampa Energia SA was 1.27. The lowest was -5.67. And the median was -2.73.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1701+0.528 * 0.1927+0.404 * 1.2688+0.892 * 1.7881+0.115 * 3.5285
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8503+4.679 * -0.0267-0.327 * 0.9755
=-1.74

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $529 Mil.
Revenue was 663.520807146 + 297.272980236 + 289.422760887 + 142.585103917 = $1,393 Mil.
Gross Profit was 114.754889637 + 7.13833528974 + 64.9019446727 + -6.46102140153 = $180 Mil.
Total Current Assets was $1,636 Mil.
Total Assets was $5,236 Mil.
Property, Plant and Equipment(Net PPE) was $2,571 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General & Admin. Expense(SGA) was $335 Mil.
Total Current Liabilities was $2,028 Mil.
Long-Term Debt was $1,109 Mil.
Net Income was -62.484723549 + -47.8155872824 + 41.6049027664 + 159.298385228 = $91 Mil.
Non Operating Income was -5.22761325356 + -12.0770572822 + 27.655847713 + 115.890983543 = $126 Mil.
Cash Flow from Operations was 0 + 0 + 11.8792796494 + 92.0703855366 = $104 Mil.
Accounts Receivable was $253 Mil.
Revenue was 202.068004637 + 192.255543939 + 190.257831899 + 194.362062917 = $779 Mil.
Gross Profit was 3.57806068728 + -0.509547130358 + 13.9011531004 + 2.46988656298 = $19 Mil.
Total Current Assets was $801 Mil.
Total Assets was $2,547 Mil.
Property, Plant and Equipment(Net PPE) was $1,352 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General & Admin. Expense(SGA) was $220 Mil.
Total Current Liabilities was $1,018 Mil.
Long-Term Debt was $546 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(529.017245714 / 1392.80165219) / (252.850898184 / 778.943443392)
=0.37982239 / 0.32460752
=1.1701

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(19.4395532203 / 778.943443392) / (180.334148198 / 1392.80165219)
=0.02495631 / 0.12947583
=0.1927

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1636.04142994 + 2571.25868571) / 5235.6585047) / (1 - (800.522850792 + 1352.0490731) / 2546.82630846)
=0.19641434 / 0.15480223
=1.2688

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1392.80165219 / 778.943443392
=1.7881

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(67.837077666 / (67.837077666 + 1352.0490731)) / (35.2935347563 / (35.2935347563 + 2571.25868571))
=0.04777642 / 0.01354031
=3.5285

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(335.206426505 / 1392.80165219) / (220.477513756 / 778.943443392)
=0.24067061 / 0.28304688
=0.8503

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1109.42859537 + 2027.71924179) / 5235.6585047) / ((546.112440573 + 1018.29169459) / 2546.82630846)
=0.59918878 / 0.61425631
=0.9755

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(90.6029771624 - 126.24216072 - 103.949665186) / 5235.6585047
=-0.0267

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -1.74 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Pampa Energia SA Annual Data

Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.46250.49210.75131.06371.38350.94561.54141.10181.0771
GMI 1.59381.0931.0541.21921.87841.8956-1.0086-1.77722.9801
AQI 0.26911.08390.77041.04442.05530.78030.59691.15020.881
SGI 1186.27912.47460.92671.13630.99261.120.61850.8620.7625
DEPI 3.20070.50331.08850.91450.94291.01251.1361.30490.8628
SGAI 0.03550.88341.14781.06071.01380.94341.89561.14041.2514
LVGI 4.9181.11490.93571.09661.15431.15641.25151.00430.9261
TATA -0.0243-0.0633-0.0942-0.0594-0.135-0.1453-0.0662-0.1064-0.1013
M-score 1,054.26-1.92-3.27-2.50-1.93-2.76-4.08-4.40-2.13

Pampa Energia SA Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.54961.38281.20591.13051.06971.03130.8480.93021.15961.1701
GMI 15.914-2.3556-1.7869-0.6029-0.02790.47671.99250.37580.37530.1927
AQI 0.86880.79621.15021.14481.0730.94410.8810.8740.91881.2688
SGI 0.68680.73260.78760.88420.92721.00690.96851.08651.21041.7881
DEPI 1.00441.37591.41611.60311.36940.91380.70350.64080.96153.5285
SGAI 1.44311.36491.18761.20151.29151.2291.20451.02080.92540.8503
LVGI 1.18741.14411.00430.86850.8820.92250.92610.95041.00010.9755
TATA -0.1588-0.1804-0.1127-0.0882-0.1032-0.083-0.1346-0.118-0.0898-0.0267
M-score 4.69-5.13-4.40-3.59-3.45-3.16-2.85-3.43-2.92-1.74
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK